As the end of the financial year looms, Australians are facing an increased risk of falling victim to tax-related scams. The Australian Taxation Office (ATO) has issued a strong warning about a surge in impersonation scam emails and SMS messages that are designed to catch taxpayers off guard.
These scams, which are often disguised as legitimate communications from the ATO, exploit the busy tax period to trick unsuspecting individuals into sharing personal and financial details.The ATO has reported a 300% increase in impersonation scams compared to the same time last year, with a notable rise in the number of people reporting these fraudulent activities.
The Rise of Impersonation scams
With the end of the financial year fast approaching, scammers are taking advantage of the heightened activity in the tax system. The ATO typically sees an increase in scam reports at this time of year, as people expect to hear from the tax office regarding their returns and financial obligations. However, many of these communications are not from the ATO at all.
Jenny Wong, a tax expert with CPA Australia, warned that Australians should be prepared for a “deluge of scam activity” in the coming weeks. She explained that scammers often target individuals through unsolicited emails or text messages, claiming to be from the ATO or another reputable organization. These messages often look legitimate and may arrive at times when people are more likely to make a mistake or act hastily, such as early in the morning.
ATO warning over 'deluge' coming for taxpayers in coming weeks: 'Catch you off-guard' https://t.co/8iBRzOEI9a
— Yahoo Finance Australia (@YahooFinanceAU) June 10, 2025
How The Scams Work
These tax scams are designed to manipulate recipients into providing sensitive personal information, such as tax file numbers, bank account details, and login credentials. Scammers use a range of tactics to deceive individuals, such as claiming that they are owed a tax refund, or warning that immediate action is needed to avoid penalties or legal issues. They may also include links that lead to fake websites designed to steal personal information.
The ATO has emphasized that these scam emails and texts often feature urgent calls to action, such as “click here to claim your refund” or “avoid being penalized.” These messages typically instruct the recipient to log into their myGov account or follow a link to an official government page. However, the ATO never includes hyperlinks in unsolicited SMS messages, making these easy to identify as fraudulent.
The Growing Financial Threat
The rise in phishing scams is having a significant financial impact on Australians. According to Scamwatch data, Australians lost $119 million to scams in the first four months of 2025, with phishing scams accounting for $13.7 million of these losses. This represents a dramatic increase from the previous year, when losses to phishing scams totaled just $4.6 million during the same period.
The surge in scams is not only concerning because of the financial losses, but also because of the damage they can do to people’s personal and financial security. Once scammers gain access to sensitive information, they can commit identity theft and fraud, potentially ruining individuals’ credit histories and leading to further financial losses.
How to Protect Yourself from Tax Scams
The ATO has provided clear guidelines on how to spot and avoid these scams. First and foremost, it’s essential to remember that the ATO never sends unsolicited emails or SMS messages containing hyperlinks. If you receive a message that asks you to click a link or provide personal details, it’s likely to be a scam.
Additionally, if you are ever in doubt, the ATO advises taxpayers to contact them directly through official channels rather than responding to suspicious messages. It is also wise to regularly check your myGov account for any updates or notifications, and to verify that all communication is legitimate before acting on it. With tax season upon us, staying informed and cautious will help Australians avoid falling victim to these increasingly sophisticated scams.
